Eligibility Requirements

The retirement savings contributions credit is a nonrefundable credit eligible taxpayers may claim if they made a qualifying contribution to a retirement plan. If the contribution is tax deferred, the taxpayer receives the benefit of the tax deferral and a tax credit; for example, a taxpayer may be able to claim this credit and a deduction for an IRA contribution. This is considered a double benefit and is rarely allowed.

Eligibility for this credit is affected by adjusted gross income, filing status, age, whether the taxpayer can be claimed as a dependent, and being a full-time student. To determine if a taxpayer qualifies for the credit, conduct a probing interview guided by the Retirement Savings Contribution Credit — Decision Tree in the Volunteer Resource Guide (Tab G).

Modified AGI Limit

For 2011, taxpayers may be able to claim the retirement savings contribution credit if their modified AGI is not more than:

• $56,500 for Married Filing Jointly
• $42,375 for Head of Household
• $28,250 for Single, Married Filing Separately, or Qualifying Widow(er)